Monday, February 5, 2018

The Lesson of Old Cars

Those readers with gray hair may recall when cars had a manual transmission.  To shift gears, you had to push in the clutch.  When you did so, the car temporarily slowed.

The stock market is shifting into a higher gear, and the clutch is now pushed in.  It is shifting from the sugar-high of low interest rates in a one-trick-pony-world where the U.S. was growing alone to a new world of worldwide growth amid rising interest rates.

Will it be messy?  Yes!

Will it be scary!  Yes!

Will the clutch be released & the market return to new record highes?  Absolutely!